Benefits Of Registering As A Taxpayer If You’re A Small Business Operator In KenyaKuza Blog

In his Eighth State of the Country Handle on 30th Nov this yr, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Modest, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economic system but a big amount of them are unlicensed.

According to the 2017 Economic Study, there are about 1.56 million licensed MSMEs and 5.85 million unlicensed equivalent companies in Kenya.

This signifies that considerably less than 27 percent of all firms in Kenya are registered. Out of these, 92.2 per cent are micro-enterprises even though only 7.1 p.c and .7 p.c are compact and medium enterprises respectively.

The motive some of the MSME operators give for not registering their organizations is that they fear remaining subjected to high taxation that might conclusion up having on their earnings.

Nonetheless, as you will soon find out, there are a lot of benefits that await unregistered MSME operators as taxpayers that like loans and federal government products and services. 

Bid for government contracts

Bid for government contracts

As a registered tiny business enterprise operator as a taxpayer, you will be putting by yourself in the finest placement to bid and get govt tenders and trade with the federal government and non-govt establishments.

If your business is not registered, you simply cannot bid for federal government contracts or even associate with other companies to take edge of communal benefits like essential networks, particularly with more substantial corporations with who they could even enter into sub-contracts.

Consequently, you will continuously be locked out of handy enterprise associations. Simply just put, if an business is not a taxpayer it can not grow!

Personalized tax and customs advisory services

Personalised tax and customs advisory expert services

These are companies presented by the Kenya Earnings Authority (KRA) by its broad community, social media, and telephony among the others to hell MSMEs operators fully grasp the tax and customs setting especially if they intend to get into import and export business enterprise.

This is in addition to industry and networking alternatives via its taxpayers’ roundtables that the taxman organizes to provide jointly organizations for reasons of sharing troubles affecting them and acquiring organization suggestions in line with the core business of the authority.

It is during these meetings that the Authority avails options for business owners to community and even build new marketplaces.

Import and export incentives

Import and export incentives

As a modest organization operator, your purpose is to grow from serving the neighborhood individuals to undertaking company globally. No enterprise operator would their undertaking keep on being stagnant as a result the will need for registration.

MSMEs registered with the taxman stand the possibility of obtaining import incentives that include things like diminished import tariffs on inputs these kinds of as equipment and raw products to spur production of products for export where the authority offers free VAT for its members.

The taxman also has a provision for funds allowances on mounted machinery and a doable 20 p.c export payment arrangement.

Numerous business opportunities

Various small business prospects

Did you know? In line with the govt directive on public procurement, 30 p.c of all procurement at KRA goes to enterprises operate by the youth, females, and people with disabilities which are primarily MSMEs. One more cause why you need to have to sign up as a smaller enterprise operator.

Unregistered enterprises should really sign-up as taxpayers in buy to open up doorways to enterprise options that can only be accessed after the enterprise acquires the all-vital PIN amount.

Leave a Reply